Which Organizational Structure Is the Most Simple and Inexpensive

question 49

Multiple Choice

Which organizational structure is the most simple and inexpensive?

• A) Departmental
• B) Strategic business unit
• C) Functional
• D) Decentralized
• E) Matrix

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Definitions:

Capital Lease

A lease classified as a purchase by the lessee, whereby the lessee records the leased asset as an owned asset on the balance sheet.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Long-term Liability

A long-term liability is a financial obligation of a company that is due beyond one year, such as bonds payable, long-term leases, and pension obligations.

Capital Lease Obligations

Long-term lease agreements that are recorded as assets on a company's balance sheet, effectively treating the lease as a purchase of the asset.